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Cambodian Spotlight

Federal Reserve Bank Takes Action to Stimulate the US Economy

A debt crisis in Europe and fear of looming budget cuts and tax increases known as "the fiscal cliff" have caused economic growth in the United States to remain sluggish. The unemployment rate is still high in the US (8.1 percent in August). On Sept. 13, the US Federal Reserve Bank took extraordinary action to overcome these obstacles in the US economy. The Fed, which is in charge of interest rates, is pumping money into the economy by buying investments. Republicans say this action is not going to work, because the Fed has done this twice already, and that it could cause inflation. Democrats say doing this is better than doing nothing and are hoping for economic growth that could help the reelection bid of President Barack Obama. VOA Khmer's Moryvan Ly discusses the Fed's action via Skype with Duch Darin, an economist in Florida.